Saks Global Has Filed for Chapter 11 Bankruptcy
Initiating a restructuring following a $100 million USD interest default.
Summary
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Saks Global has filed for voluntary Chapter 11 bankruptcy protection to manage its debt load after failing to meet a significant interest payment due at the end of December
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Former Neiman Marcus head Geoffroy van Raemdonck has been appointed as the new CEO to lead the restructuring effort, taking over the role from Richard Baker
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Supported by $1.75 billion USD in new debtor-in-possession financing, the company plans to keep all Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman locations fully operational
In a definitive move to stabilize its future, Saks Global officially filed for Chapter 11 bankruptcy protection this Wednesday. The filing follows a period of intense financial pressure for the retail titan, which serves as the parent company for Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. The tipping point arrived on December 30, when the company was unable to meet a $100 million interest payment, forcing leadership to seek a court-supervised restructuring as the only viable path forward.
In a significant leadership transition, Geoffroy van Raemdonck, the former chief of Neiman Marcus Group, has been appointed CEO to navigate the restructuring process, succeeding Richard Baker. To ensure operational stability during this period, Saks Global has secured $1.75 billion in new financing. This package includes $1.5 billion from senior bondholders and $240 million in additional liquidity from asset-based lenders, providing the necessary runway to reorganize its massive debt load and repair strained vendor relationships.
Crucially for shoppers and staff, the company’s physical boutiques and e-commerce platforms remain fully operational. Saks Global has signaled its intent to maintain all customer programs, honor employee benefits, and ensure consistent payments to vendors moving forward. While this filing represents the largest in a recent wave of luxury retail collapses, the infusion of fresh capital offers a glimmer of hope that the iconic retailer can emerge from the downturn as a leaner, more resilient entity.
